Nigerian fintech PalmPay sets sights on remittances in Asia expansion plan
Joseph Olaoluwa
PalmPay, a Nigerian fintech with over 30 million users and $6 billion in monthly transaction volume, is considering venturing into the remittance market as part of its ambitious expansion plans into Asia.
The company is targeting the Middle East and Southeast Asia in 2025. While specific details remain under wraps, Managing Director Chika Nwosu confirmed that remittance services are being explored as part of the company’s strategic roadmap.
“We are moving to the Middle East and Southeast Asia and will also expand into other African countries,” Nwosu said during a Q&A session at a media roundtable organised by the fintech last week. “We are conducting research and developing business strategies. Wherever we see opportunities, we will go there.”
This move aligns with a growing trend among African fintechs to tap into the global remittance market, particularly in Asia. Startups like LemFi and Leatherback have already begun offering services in low- and middle-income countries (LMICs) across the continent, which account for 75% of global remittance inflows. The World Bank estimates that total official remittances to LMICs reached $685 billion in 2024, a 5.8% increase from the previous year.
Asia, with its massive diaspora population, presents a significant opportunity for remittance providers. India, China, and Pakistan, among the top recipients of remittances worldwide, are key targets for companies like LemFi. In 2024, India alone received an estimated $129 billion in remittances.
The Asia and Pacific region accounted for a substantial 38% of global remittance inflows in 2023, highlighting its importance in this sector. These remittances serve as crucial lifelines for many Asian countries, which serve as origin countries for relatively skilled migrants departing to high-income countries. They are also associated with cheap labour dynamics.
For PalmPay, venturing into the remittance market could significantly boost revenue streams and increase its user base beyond its current 16 million monthly active users. As African fintechs seek to diversify revenue sources and navigate local currency volatility, cross-border services like remittances are becoming increasingly attractive.
